In the WTF? category, this story via Domestic Fuel reports that two biodiesel homebrewers have been targeted by the State Dept. of Revenue for failing to pay taxes on the fuel that they produced and used themselves.

Vegetable oil converted to motor-vehicle fuel is considered a biodiesel, which is taxable under state law, said Meredith Helgerson, spokeswoman for the Revenue Department.

Biodiesel makers must pay an inspection fee of 2 cents per gallon, the letter said. If the biofuel is blended with diesel that is used for driving on highways, the manufacturer must also pay the Wisconsin motor-vehicle fuel tax rate of about 31 cents per gallon, according to the letter.

I could understand if these two were operating a small time bio-diesel pump out of their garage, providing neighbors with the fuel. However, taxing these gentlemen for the fuel that they are producing and using in their own vehicles is mind blowing. To me that is like saying “Compost has sales tax on it when you buy it at a store, so you owe us sales tax on all of the compost that you produced last year and didn’t have to purchase.”

If I were in WI, I’d consider going with SVO vs. biodiesel.